Bill Text: GA HB1023 | 2009-2010 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Jobs, Opportunity, and Business Success Act of 2010; enact
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2010-06-04 - Veto V8 [HB1023 Detail]
Download: Georgia-2009-HB1023-Comm_Sub.html
Bill Title: Jobs, Opportunity, and Business Success Act of 2010; enact
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2010-06-04 - Veto V8 [HB1023 Detail]
Download: Georgia-2009-HB1023-Comm_Sub.html
10 LC
18 8944S
The House Committee on Small Business Development and Job Creation offers the
following substitute to HB 1023:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
enact the Jobs, Opportunity, and Business Success Act of 2010; to amend and
enact provisions intended to provide for tax relief and encourage employment
opportunities and business stimulation; to provide for a short title; to provide
for legislative intent; to amend Title 14 of the Official Code of Georgia
Annotated, relating to corporations, partnerships, and associations, so as to
provide for a period of time for the waiver of certain filing fees otherwise
charged in connection with such entities; to amend Title 34 of the Official Code
of Georgia Annotated, relating to labor and industrial relations, so as to
provide that, for a period of time, employers who hire persons receiving
employment security benefits shall be entitled to a credit against employer
contributions; to amend Title 48 of the Official Code of Georgia Annotated, the
"Georgia Public Revenue Code," so as to provide that a portion of net long-term
capital gains shall be excluded from state taxable income of corporations and
individuals; to provide for credits against state income tax for employers
employing certain previously unemployed persons; to provide for an income tax
credit for certain qualified business investments for a limited period of time;
to provide for a short title; to provide for legislative findings and intent; to
provide for definitions; to provide for conditions and limitations; to provide
for powers, duties, and authority of the state revenue commissioner with respect
to the foregoing; to eliminate the corporate net worth tax; to provide for other
related matters; to provide for an effective date; to repeal conflicting laws;
and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
(a)
This Act shall be known and may be cited as the "Jobs, Opportunity, and Business
Success Act of 2010."
(b) The General Assembly intends through the enactment of this Act to provide for tax relief and encourage employment opportunities and business stimulation.
(b) The General Assembly intends through the enactment of this Act to provide for tax relief and encourage employment opportunities and business stimulation.
SECTION
2.
Title
14 of the Official Code of Georgia Annotated, relating to corporations,
partnerships, and associations, is amended by revising Code Section 14-2-122,
relating to fees for filings related to business corporations, as
follows:
"14-2-122.
(a)
The Secretary of State shall collect the following fees and penalties when the
documents described in this Code section are delivered to him or her for
filing:
Document
|
Fee
|
(1)
Articles of incorporation
|
$
100.00
|
(2)
Application for certificate of authority
|
225.00
|
(3)
Annual registration
|
30.00
|
(4)
Penalty for late filing of annual registration
|
25.00
|
(5)
Agent's statement of resignation
|
No
fee
|
(6)
Certificate of judicial dissolution
|
No
fee
|
(7)
Articles of dissolution or intent to dissolve
|
No
fee
|
(8)
Application of withdrawal
|
No
fee
|
(9)
Application for reservation of a corporate name
|
25.00
|
(10)
Civil penalty for a foreign corporation transacting business in this state
without a certificate of authority
|
500.00
|
(11)
Statement of change of address of registered agent...$5.00 per corporation but
not less than
|
20.00
|
(12)
Application for reinstatement
|
100.00
|
(13)
Certificate of conversion
|
95.00
|
(14)
Any other document required or permitted to be filed by this chapter . .
|
20.00
|
(b)
In order to create a 'Year for Georgia Entrepreneurs,' for the period of time
beginning July 1, 2010, and ending June 30, 2011, the fees specified in
paragraph (1) of subsection (a) of this Code section shall be waived for
applications filed
electronically."
SECTION
3.
Said
title is further amended by revising Code Section 14-9-1101, relating to fees
for filings related to limited partnerships, as follows:
"14-9-1101.
(a)
The Secretary of State shall charge and collect for filing:
Document
|
Fee
|
(1)
A certificate of limited partnership
|
$
100.00
|
(2)
A registration of a foreign limited partnership
|
225.00
|
(3)
An annual registration
|
30.00
|
(4)
Penalty for late filing of annual registration
|
25.00
|
(5)
Agent's statement of resignation
|
No
fee
|
(6)
Certificate of cancellation
|
No
fee
|
(7)
Application of withdrawal
|
No
fee
|
(8)
Statement of change of address of registered agent or registered office... $5.00
per limited partnership but not less than
|
20.00
|
(9)
An amendment to a certificate of limited partnership for the purpose of becoming
a limited liability partnership
|
100.00
|
(10)
Certificate of election to become a limited partnership
|
80.00
|
(11)
Certificate of conversion
|
95.00
|
(12)
Application for reservation of a name
|
25.00
|
(13)
Any other document required or permitted pursuant to this chapter
|
20.00
|
(b)
In order to create a 'Year for Georgia Entrepreneurs,' for the period of time
beginning July 1, 2010, and ending June 30, 2011, the fees specified in
paragraph (1) of subsection (a) of this Code section shall be waived for
applications filed
electronically."
SECTION
4.
Said
title is further amended by revising Code Section 14-11-1101, relating to fees
for filings related to limited liability companies, as follows:
"14-11-1101.
(a)
The Secretary of State shall collect the following fees when the documents
described below are delivered to the Secretary of State for filing pursuant to
this chapter:
Document
|
Fee
|
(1)
Articles of organization
|
$
100.00
|
(2)
Articles of amendment
|
20.00
|
(3)
Articles of merger
|
20.00
|
(4)
Certificate of election under Code Section 14-11-212 (together with articles of
organization)
|
95.00
|
(5)
Application for certificate of authority to transact business
|
225.00
|
(6)
Statement of commencement of winding up
|
No
Fee
fee
|
(7)
Certificate of termination
|
No
Fee
fee
|
(8)
Application of withdrawal
|
No
fee
|
(9)
Articles of correction
|
20.00
|
(10)
Application for reservation of a name
|
25.00
|
(11)
Statement of change of registered office or registered agent...$5.00 per limited
liability company (foreign or domestic), but not less than
|
20.00
|
(12)
Registered agent's statement of resignation pursuant to subsection (d) of Code
Section 14-11-209 or subsection (d) of Code Section 14-11-703
|
No
fee
|
(13)
Certificate of judicial dissolution
|
No
fee
|
(14)
Annual registration (foreign or domestic)
|
30.00
|
(15)
Penalty for late filing of annual registration
|
25.00
|
(16)
Reinstatement fee
|
100.00
|
(17)
Any other document required or permitted to be filed by
this
chapter
|
20.00
|
(18)
Certificate of conversion
|
95.00
|
(b)
The Secretary of State shall collect the penalty provided for in paragraph (2)
of subsection (c) of Code Section 14-11-711.
(c)
In order to create a 'Year for Georgia Entrepreneurs,' for the period of time
beginning July 1, 2010, and ending June 30, 2011, the fees specified in
paragraph (1) of subsection (a) of this Code section shall be waived for
applications filed
electronically."
SECTION
5.
Title
34 of the Official Code of Georgia Annotated, relating to labor and industrial
relations, is amended by revising Code Section 34-8-156, relating to the
State-wide Reserve Ratio and reduction in tax rate, by adding a new subsection
to read as follows:
"(g)(1)
The Commissioner shall make an expedited request within 15 days of the effective
date of this Act for a determination by the United States secretary of labor
that implementation of paragraph (3) of this subsection is in conformity with
federal law. If the United States secretary of labor determines that paragraph
(3) of this subsection is not in conformity with federal law and cannot be
adjusted procedurally by the Commissioner pursuant to Code Section 34-8-93
pending action of the General Assembly to bring about conformity with federal
law, paragraph (3) of this subsection shall not become effective. Upon such
determination the Commissioner shall take all necessary steps to obtain a waiver
of conformity with federal law from the United States secretary of labor. If
such waiver is granted, paragraph (3) of this subsection shall become effective
immediately upon the granting of the waiver. If the United States secretary of
labor determines that paragraph (3) of this subsection could be implemented in
conformity with federal law if procedurally adjusted by the Commissioner, the
Commissioner shall exercise the authority granted under Code Section 34-8-93 to
make such adjustments and paragraph (3) of this subsection shall become
effective immediately following such adjustment. If the United States secretary
of labor determines that paragraph (3) of this subsection is in conformity with
federal law, paragraph (3) of this subsection shall become effective immediately
upon such determination.
(2)
In the event paragraph (3) of this subsection becomes effective, it shall not be
implemented unless the Commissioner determines that the employer contribution
and reimbursement liability shall not increase as a result of such
implementation.
(3)
If this paragraph becomes effective, for calendar quarters beginning on or after
July 1, 2010, there shall be a credit to be known as the Georgia Works Tax
Credit. The amount of the credit shall be not less than $25.00 and not more
than $125.00 per individual employee per calendar quarter, as further described
in this paragraph. The determination of the amount of the credit, within the
permissible range, shall be made and periodically revised by the Commissioner
based on the Commissioner's evaluation of conditions in the Georgia labor
market, the state of the economy, and the State-wide Reserve Ratio. The credit
may be claimed by an employer for up to four calendar quarters for each
individual hired by that employer for services to be performed in this state
under the following conditions:
(A)
Such individual:
(i)
Has filed a claim for unemployment compensation in this state and is currently
receiving weekly unemployment compensation benefits on that claim under the
provisions of Article 7 of this chapter and such benefits are chargeable to the
experience rating account of an employer under Code Section
34-8-157;
(ii)
Has been profiled by the department as likely to exhaust benefits;
(iii)
Has no return-to-work date or promise of future employment; and
(iv)
Has at least eight weeks of benefit eligibility remaining on his or her current
claim at the time the employer hires the individual;
(B)
The credit for each such hired individual per calendar quarter may be claimed on
the reports required to be filed under Code Section 34-8-165 as a reduction from
amounts otherwise due in each of the four calendar quarters immediately
following the hire date of the individual; provided, however, that the credit
may not be claimed for any individual who has been hired more than once by the
employer claiming the credit or for more than four calendar quarters for that
one hiring;
(C)
For each calendar quarter for which the credit is claimed, such individual shall
be continuously employed by the employer claiming the credit, and such
individual's employment with that employer shall consist of at least 30 hours
per week during each week of that calendar quarter;
(D)
The credit shall be timely claimed for the calendar quarter to which the credit
is applicable, and in no event later than the last day of the reporting month
following the end of the calendar quarter to which the credit is applicable.
The credit shall not be refundable. The credit cannot reduce tax liability
below zero; provided, however, that the credit, if properly and timely claimed,
may be carried forward and applied against contributions due in any subsequent
calendar quarter in the same calendar year as claimed. Any unused credit
remaining at the end of a calendar year shall not be carried forward to another
calendar year and shall be deemed to have expired; and
(E)
No credit shall be claimed or taken by any employer who fails to timely file any
report or to timely pay all amounts otherwise due for all calendar quarters
during the calendar year for which the credit is claimed. In the event an
employer has claimed a credit under this Code section and fails to timely file
any report or to timely pay all amounts otherwise due during the year the credit
is claimed, the amount of any credits claimed for that calendar year shall be
canceled and become delinquent as of the date originally due under Code Section
34-8-165 and subject to all the provisions of this article as if no credit had
ever been available or
claimed."
SECTION
6.
Title
48 of the Official Code of Georgia Annotated, the "Georgia Public Revenue Code,"
is amended in Code Section 48-7-21, relating to taxation of corporations, by
adding at the end of subsection (b) a new paragraph (17) to read as
follows:
"(17)(A)
For the taxable year beginning on or after January 1 of the calendar year
immediately following the state fiscal year in which the revenue shortfall
reserve is funded at the level of $500 million or more as certified to the
commissioner in writing by the state auditor, and prior to January 1 of the next
succeeding taxable year, there shall be subtracted from taxable income an amount
equal to 25 percent of the excess of the net long-term capital gain, over the
net short-term capital loss included in Georgia taxable net income.
(B)
For all taxable years beginning on or after January 1 of the taxable year next
succeeding the taxable year specified in subparagraph (A) of this paragraph,
there shall be subtracted from taxable income an amount equal to 50 percent of
the excess of the net long-term capital gain, over the net short-term capital
loss included in Georgia taxable net
income."
SECTION
7.
Said
title is further amended in subsection (a) of Code Section 48-7-27, relating to
computation of taxable net income of individuals, by deleting "and" at the end
of paragraph (14); replacing the period at the end of paragraph (15) with ";
and"; and adding a new paragraph (16) to read as follows:
"(16)(A)
For the taxable year beginning on or after January 1 of the calendar year
immediately following the state fiscal year in which the revenue shortfall
reserve is funded at the level of $500 million or more as certified to the
commissioner in writing by the state auditor, and prior to January 1 of the next
succeeding taxable year, an amount equal to 25 percent of the excess of the net
long-term capital gain, over the net short-term capital loss included in Georgia
taxable net income.
(B)
For all taxable years beginning on or after January 1 of the taxable year next
succeeding the taxable year specified in subparagraph (A) of this paragraph, an
amount equal to 50 percent of the excess of the net long-term capital gain, over
the net short-term capital loss included in Georgia taxable net
income.
(C)
For purposes of this paragraph, the terms 'net long-term capital gain' and 'net
short-term capital loss' shall mean the same as defined in Section 1222 of the
Internal Revenue Code."
SECTION
8.
Said
title is further amended by adding a new Code section to read as
follows:
"48-7-29.18.
(a)
As used in this Code section, the term:
(1)
'Creditable employee' means an employee of an employer who:
(A)
Is first employed by the employer in this state on or after the effective date
of this Code section and prior to July 1, 2011;
(B)
Was unemployed at least 13 weeks immediately prior to becoming so employed and
was eligible to receive unemployment benefits during such time;
(C)
Remains so employed by the employer for at least 24 consecutive
months;
(D)
Is employed by the employer in a net new job which did not previously exist
rather than merely being employed by the employer to fill a vacant
position;
(E)
Executes and provides a notarized affidavit swearing or affirming that such
employee is eligible to work in the United States because such person is either
a United States citizen or a lawfully present alien according to federal law;
and
(F)
During the entire period of such employment receives annual compensation in an
amount at least equal to 180 percent of the poverty level. The commissioner
shall establish and maintain rules governing the determination of the poverty
level. The rules may use for this purpose the United States Department of
Health and Human Services Poverty Guidelines or any other similar guidelines
established by the federal government, if the commissioner determines that such
federal guidelines reflect the poverty level of persons in the State of
Georgia.
(G)
Executes and provides a notarized affidavit swearing or affirming that such
employee is eligible to work in the United States because such person is either
a United States citizen or a lawfully present alien according to federal law;
and
(H)
During the entire period of such employment receives annual compensation in an
amount at least equal to 180 percent of the poverty level. The commissioner
shall establish and maintain rules governing the determination of the poverty
level. The rules may use for this purpose the United States Department of
Health and Human Services Poverty Guidelines or any other similar guidelines
established by the federal government, if the commissioner determines that such
federal guidelines reflect the poverty level of persons in the State of
Georgia.
(2)
'Staffing firm' means an organization that hires its own employees and assigns
them to a client to support or supplement the client's work force in special
work situations such as employee absences, temporary skill shortages, seasonal
workloads, and special assignments and projects.
(b)
An employer who has one or more creditable employees and who provides a
notarized affidavit attesting to use of the federal employment verification
system now known as 'E-Verify' or any future federal employment verification
system shall be eligible to apply for and receive a credit against taxes imposed
under this chapter. The amount of the credit shall be $2,400.00 for each
creditable employee. Eligibility for the credit shall be established as of the
time the creditable employee completes 24 consecutive months of employment; and
the credit shall be claimed for the taxable year in which the twenty-fourth
month of such employment is completed.
(c)
In no event shall the total amount of any tax credit under this Code section for
a taxable year exceed the taxpayer's income tax liability. Any unused tax
credit shall be allowed to be carried forward to apply to the taxpayer's
succeeding two years' tax liability. No such tax credit shall be allowed the
taxpayer against prior years' tax liability.
(d)
The credit shall be claimed and granted in such manner as shall be specified by
rules adopted by the commissioner; and such rules shall specifically provide for
the manner of establishing the qualifying status of unemployment of the employee
prior to employment.
(e)
For the purpose of determining whether an employee is employed by the employer
under subsection (a) of this Code section, employment may include up to 13 weeks
of continuous prior service for the employer as a temporary employee of a
staffing firm."
SECTION
9.
Said
title is further amended by adding a new Code section to read as
follows:
"48-7-40.29.
(a)
This Code section shall be known and may be cited as the 'Angel Investor Income
Tax Credit.'
(b)
The General Assembly finds that the welfare of the state is enhanced by a
healthy entrepreneurial business environment and that ready sources of capital
necessary to support this environment are not currently available in the
state.
(c)
The intent of this Code section is to achieve the following:
(1)
To create the angel investor income tax credit program to encourage third-party
investors to invest in early stage, innovative, wealth-creating
businesses;
(2)
To facilitate the availability of equity investment in businesses in the early
stages of commercial development;
(3)
To expand the economy of the state by enlarging its base of wealth-creating
businesses; and
(4)
To enlarge the number of high quality, high paying jobs within the state both to
attract qualified individuals to move to and work within the state and to retain
young people educated in Georgia.
(d)
As used in this Code section, the term:
(1)
'Investment' means:
(A)
A contribution of cash or cash equivalents in a qualified Georgia business for
common or preferred stock or subordinated debt that is convertible into, or
entitles the holder to receive upon its exercise, common or preferred stock;
(B)
An interest in a partnership in which contribution of proceeds is not secured or
guaranteed and is at risk or otherwise dependent solely upon the success of a
qualified Georgia business and which proceeds are used solely for capital
improvements, research and development, or working capital for such qualified
Georgia business; and
(C)
A contribution of cash or cash equivalents by a pass-through entity domiciled in
this state;
provided,
however, that funds constituting an investment cannot have been raised or be
raised as a result of other tax incentive programs, cannot be composed of funds
raised prior to January 1, 2011, and pooled or organized through capital
placement agreements for the purpose of equity and venture capital investing,
and cannot be composed of pooled capital in the form of hedge funds or
commodities funds. Furthermore, the purchase of equity securities shall not
qualify as an investment if a broker fee or commission or a similar remuneration
is paid or given directly or indirectly for soliciting the
purchase.
(2)
'Investor' means a taxpayer of this state.
(3)
'Net income tax liability' means income tax liability reduced by all other
credits allowed under this chapter.
(4)
'Qualified Georgia business' means a business that is domiciled in this state,
employs 20 or fewer people in this state, has gross annual sales of less than
$500,000.00, has not obtained during its existence more than $1 million in
aggregate gross cash proceeds from the issuance of its equity or debt
investments not including commercial loans from chartered banking or savings and
loan institutions, has a business net worth of less than $3
million.
(e)
For any investor making an investment in the 2010, 2011, 2012, 2013, or 2014
calendar year there shall be allowed an income tax credit that shall be
deductible from such investor's net income tax liability, if any, imposed by
this chapter for the taxable year commencing on January 1 of the second year
following the year in which the investment was made as provided by this Code
section.
(f)
For any investor that is a pass-through entity and purchases the equity
securities or subordinated debt of a qualified Georgia business directly from
that business there shall be allowed an income tax credit that shall be
deductible from such investor's net income tax liability, if any, imposed by
this chapter for the taxable year in which the investment was made and the
following two years as provided by this Code section; provided, however, that no
credit under this Code section shall be allowed to a pass-through entity that
has current committed capital under management in excess of $5 million or to a
pass-through entity that is a qualified Georgia business.
(g)
In no event shall the total amount of the tax credit under this Code section for
a taxable year exceed the taxpayer's net income tax liability. Any unused tax
credit shall not be allowed the taxpayer against the succeeding two years' tax
liabilities. No such tax credits shall be allowed the taxpayer against prior
years' tax liability.
(h)
The aggregate amount of credit allowed a taxpayer for one or more investments in
a single taxable year under this Code section, whether directly or indirectly,
shall not exceed $50,000.00 or an amount equal to 50 percent of the aggregate
amount of such investments in a single year, whichever is less.
(i)(1)
The credit claimed under this Code section shall be recaptured if in the
two-year period after the date of the investment:
(A)
The qualified Georgia business or an interest in such business has been sold by
the investor; or
(B)
The investor has withdrawn the investment wholly or partially from the qualified
Georgia business.
(2)
The credit shall not be recaptured if the qualified Georgia business ceases
business operations.
(3)
The recapture under this subsection shall be equal to 50 percent of the amount
of the total tax credit claimed under this Code section. The amount of the
credit recaptured shall apply only to the investment in the particular qualified
business in which the investment was made. The amount of the recaptured tax
credit determined under this subsection shall be added to the taxpayer's income
tax liability for the taxable year in which the recapture occurs under this
subsection.
(j)
The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer the provisions of this Code
section.
(k)(1)
The total aggregate amount of all tax credits allowed to investors or
pass-through entities for investments made in the 2010 calendar year and claimed
and allowed in the 2012 taxable year shall not exceed $10 million in such
year.
(2)
The total aggregate amount of all tax credits allowed to investors or
pass-through entities for investments made in the 2011 calendar year and claimed
and allowed in the 2013 taxable year shall not exceed $10 million in such
year.
(3)
The total aggregate amount of all tax credits allowed to investors or
pass-through entities for investments made in the 2012 calendar year and claimed
and allowed in the 2014 taxable year shall not exceed $10 million in such
year.
(4)
The total aggregate amount of all tax credits allowed to investors or
pass-through entities for investments made in the 2013 calendar year and claimed
and allowed in the 2015 taxable year shall not exceed $10 million in such
year.
(5)
The total aggregate amount of all tax credits allowed to investors or
pass-through entities for investments made in the 2014 calendar year and claimed
and allowed in the 2016 taxable year shall not exceed $10 million in such
year.
(l)
The commissioner shall allow the tax credits on a first come, first served
basis.
(m)
The taxpayer shall notify the department of the total amount of investment that
the taxpayer intends to make before making the investment. The commissioner
shall preapprove or deny the requested amount within 30 days after receiving the
request from the taxpayer. In order to receive a tax credit under this Code
section, the taxpayer shall make the investment within 30 days after receiving
notice from the department of the preapproved amount.
(n)
No credit shall be claimed and allowed under this Code section for investments
in any calendar year other than the calendar years specified in subsection (k)
of this Code section.
(o)
In order for the taxpayer to claim the tax credit under this Code section, a
letter of confirmation of investment issued by the qualified Georgia business to
which the investment was made shall be attached to the taxpayers tax return.
However, in the event the taxpayer files an electronic return, such confirmation
shall only be required to be electronically attached to the return if the
Internal Revenue Service allows such attachments when the data is transmitted to
the department. In the event the taxpayer files an electronic return and such
confirmation is not attached because the Internal Revenue Service does not, at
the time of such electronic filing, allow electronic attachments to the Georgia
return, such confirmation shall be maintained by the taxpayer and made available
upon request by the commissioner. The letter of confirmation of investment shall
contain the taxpayer's name, address, tax identification number, and the amount
and date of the
contribution."
SECTION
10.
Said
title is further amended by revising Article 4 of Chapter 13, relating to the
corporate net worth tax, in its entirety as follows:
"ARTICLE
4
48-13-70.
(a)
For net worth taxable years beginning on or after January 1, 2011, there shall
be no corporate net worth taxes whatsoever levied or collected under this
article and no corporate net worth returns are required.
(b)
Tax, penalty, and interest liabilities and refund eligibility for prior net
worth taxable years shall not be affected by the enactment of this revised
article and shall continue to be governed by the provisions of this article as
it existed immediately prior to the effective date of this
Act."
SECTION
11.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
12.
All
laws and parts of laws in conflict with this Act are repealed.